Business intelligence and Bitcoin holding company Strategy reported a substantial net loss of $12.4 billion for Q4 2025, driven by a 22% decline in Bitcoin’s price during the quarter. The company’s shares fell 17% as the value of its massive Bitcoin reserve dropped below its average purchase cost, though executives emphasized the firm’s strong long-term financial footing.
Company Strategy posted a net loss of $12.4 billion in the fourth quarter of 2025. This was driven by Bitcoin’s 22% price drop during that period.
Bitcoin reached a high of $126,000 in early October but fell to under $88,500 by December 31. It has declined 30% this year to $64,500, which is below Strategy’s average Bitcoin cost of $76,052.
The firm stated that its Q4 revenues still rose 1.9% year-on-year to $123 million. Its shares closed 17% lower on Thursday at $107 alongside the Bitcoin sell-off.
Bitcoin’s slide to a low of $62,500 on Thursday left Strategy’s holding of 713,502 Bitcoin down 17.5%. The company’s chief financial officer Andrew Kang said the capital structure remains stronger than ever.
“Strategy has built a digital fortress anchored by 713,502 Bitcoins and our shift to Digital Credit, which aligns with our indefinite Bitcoin horizon,” Kang said. The company increased its cash holdings to $2.25 billion to cover 30 months of dividend payouts.
Strategy has no major debt maturing until 2027, reducing near-term pressure to sell Bitcoin. CEO Phong Le told investors there is no reason for panic.
“I’m not worried, we’re not worried, and no, we’re not having issues,” Le said. He noted the company’s enterprise value still exceeds its $45 billion Bitcoin reserve.
